Oil prices rise 2.5 % after China and America reduce customs duties

Oil prices increased today, Monday, 2.5%, after America and China reduced mutual customs duties for a period of 90 days, which supported the market morale that the largest consumers of crude in the world resolved their commercial dispute, which stumbled due to the huge customs duties imposed by each side on the other.

Brent crude futures rose to $ 65.22 a barrel at (07:00) GMT, and Texas crude contracts increased to $ 63.10 a barrel, as the ore rose 4% last week, in the first gains since mid -April, after investors optimistic about the American -British trade agreement avoiding economic turmoil resulting from customs duties.

China reduced customs recognition of America from 125% to 10%, while Washington reduced it to Beijing from 145% to 30%, as the two parties concluded trade talks positively on Sunday, as US officials talked about a “agreement” to reduce the American trade deficit, while Chinese officials said that the two sides reached an “important consensus”, but neither of the two sides revealed the details of the talks, and he said to Lee Feng, Deputy Prime Minister The Chinese is a joint statement to be issued today, Monday.

Positive talks between the two largest economies in the world will enhance the demand for crude oil with the resumption of trade exchange, which is currently faltering due to the huge customs duties imposed by each side on the other.

Tositaka Tazawa’s analyst “Vojitomi CISTA” said, “Optimism about constructive talks between America and China is morale, but the limited details and OPEC plan to increase production have limited the gains”, and he referred to the plans of the Organization of Petroleum Exporting Countries, to accelerate production increases in May and June, which will add more crude to the market.

However, a survey revealed to “Reuters” that OPEC’s oil production decreased slightly in April, in addition to that, officials said that Iran and America’s talks to resolve the differences of the nuclear program ended in Amman on Sunday with planning for more negotiations, and any agreement between America and Iran may reduce concerns about the decline in the global supply of oil, which may also pressure oil prices.